Dan Novaes explains a car rental-arbitrage strategy that turns cars into income-generating assets in tourist cities (Miami, LA, Las Vegas, Honolulu, etc.). He gives a numeric example of a Ford Mustang bought for $22,000, renting at $85/day with ~66% occupancy (20/30 days) producing about $2,000/month (~$24,000/year). After ~20% expenses this yields ~$19,000 profit per year, so ~$38,000 over two years; with a worst-case resale value of $11,000 the two-year net benefit becomes about $25,000. The video ends with a promotional call-to-action.
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What if I told you that instead of cars being a liability, you could turn them into income generating assets? Especially in tourist cities. This is the rental arbitrage strategy that the smart money are using right now. Cars lose value over time and most people are stuck making payments on something that just sits in their driveway. But in the right city, during peak travel seasons, that same car could be making 1500, 3000, even $10,000 a month or more. So in cities like Miami, LA, Las Vegas, Honolulu, Hawaii, etc. These are the excellent places to be able to take advantage this, especially with exotic cars. So here's an example of what we're going to break down. Here's an example of someone that is bought a Ford Mustang. So in this case, this car costs $22,000. It rents out in the market for $85 a day. And the average occupancy of this car is 20 out of the 30 days in the month. You can't assume that your car is going to be rented out 100% of the time. This is a pretty good occupancy rate, you know, around 66%. And so every month this person is earning around $2,000 a month. And if you look if they made 19,000 do profits, there's some expenses there, it seems like. So you know, that was 24k that they earned throughout the year and then in about 20% in expenses that they had to deal with, that could be insurance, that could be a variety of things. And they made $19,000 in profit. And then year two does the same thing and so they make another $19,000. And so now over the course of two years they made $38,000. Your cost is $22,000. And so essentially you have $14,000 in profit. But then we have to add back in that this car has a retail value. So even if worst case scenario, this car is now worth $11,000. So we're going to add that back in $25,000 in profit over two years with just one vehicle. Sick of wasting all this money. Follow us and get all of our hacks for free.
